TRIBAL-STATE COMPACT

Between the

MASHANTUCKET PEQUOT TRIBE

and the

STATE OF CONNECTICUT

THIS TRIBAL-STATE COMPACT made and entered into by and

between the MASHANTUCKET PEQUOT TRIBE, a federally-recognized

Indian Tribe, and the STATE OF CONNECTICUT, pursuant to the

provisions of the Indian Gaming Regulatory Act, Pub.L. 100-497,

25 U.S.C. $§2701 & seg,

- WITNESSETH:

WHEREAS, the Mashantucket Pequot Tribe is a federally-

recognized Indian Tribe, possessed of all sovereign powers and

rights thereto pertaining; and

WHEREAS, the State of Connecticut is a sovereign state of

the United States with all rights and powers thereto

pertaining; and

WHEREAS, the Congress of the United States has enacted into

law the Indian Gaming Regulatory Act, Pub.L. 100-497, 25 U.S.C.

s2701, & sea., which provides in part that a tribal-state

Compact may be negotiated between a Tribe and a State to govern

the conduct of certain gaming activities which constitute Class

111 gaming for purposes of the Act on the Indian lands of the

Tribe within the State; and

WHEREAS, the Mashantucket Pequot Tribe and the State of

Connecticut have mutually agreed, within the parameters

established by the Act, to the following provisions governing

the conduct of Class I11 gaming activities on the lands of the

Tribe designed to (a) protect the health, welfare and safety of

the citizens of the Tribe and the State, and (b) develop and

implement a means of regulation for the conduct of Class 111

gaming on Indian lands as that term is defined in the Act in

order to attempt to insure the fair and honest operation of

such gaming activities and to minimize the possibility of

corruption or illegal practices in conjunction with such

activities and (c) to attempt to maintain the integrity of all

activities conducted in regard to Class. I11 gaming;

NOW, THEREFORE, the MASHANTUCKET PEQUOT TRIBE and THE STATE

OF CONNECTICUT do enter into a Tribal-State Compact as provided

for herein.

SECTION 1. Title. This document shall be cited as "The

Mashantucket Pequot Tribe - State of Connecticut Gaming Compact. "

SECTION 2. Definitions. For purposes of this Compact:

(a) "Act" means the Indian Gaming Regulatory Act, Pub.L.

100-497, 25 u.S.C. 2701 et sea.

(b) "Bazaar game" means a game, sport, amusement,

diversion, scheme, plan, project, contest, undertaking or

enterprise wherein chance, fortune, luck or lot is the

predominating factor or element in the winning or awarding of a

prize, but shall not include a lottery nor any game, sport,

amusement, diversion, scheme, plan, project, contest, or

undertaking where the skill, accomplishment, art or adroitness

of the operator or participant is the primary factor in the

winning or awarding of a prize.

(c) "Class I11 Gaming" means all forms of gaming that are

not Class I gaming or Class I1 gaming, as defined in sections

4(6) and 4(7) of the Act, 25 U.S.C. §§2703(6) and (7).

(d) "Compact" means this Mashantucket Pequot Tribe - State of Connecticut Gaming Compact".

(e) "Complimentary services" means the provision to a

patron of a gaming facility or such patron's guest, either free

of charge or at a reduced price, of any goods or services,

including transportation, lodging, and coupons or other

representations of money for use in wagering.

(f) "Enterprise" means any individual, trust, corporation,

partnership, or other legal entity of any kind other than a

tribal enterprise wholly owned by the Mashantucket Pequot

Tribe; provided, however, that with respect to any corporation,

the term "enterprise" shall include each other corporation or

other legal entity which, directly or indirectly, controls a

majority of the voting interests in such corporation; and

further provided, that with respect to any partnership, trust,

or other form of unincorporated business organization, the term

"enterprise" shall include each corporation or other legal

entity which, directly or indirectly, controls a majority of

the voting interests in such organization.

(g) "Fronton" means a facility on the Reservation in which

the game of jai alai is conducted.

(h) "Gaming employeew means any natural person employed in

the operation or management of the gaming facilities, whether

employed by the Tribe or by any enterprise providing on-site

services to the Tribe within a gaming facility, including, but

not limited to, gaming facility managers and assistant

managers; accounting personnel; gaming facility security

personnel; gaming- facility surveillance personnel; credit

executives; gaming facility cashier supervisors; dealers or

croupiers; box men; floormen; pit bosses; video facsimile game

mechanics and attendants; shift bosses; cage personnel;

collection personnel; lottery ticket sellers; persons employed

in the acceptance or redemption of pari-mutuel wagers;

simulcasting equipment operators; computer operators and

technicians; food and beverage service personnel; and any other

natural person whose employment duties require or authorize

access to restricted areas of the gaming facilities not

otherwise opened to the public; and any owner of an interest in

a greyhound which races at any Tribal gaming operation, whether

or not such owner participates actively in such operation or is

present at any gaming facility.

(i) "Gaming equipment" means any machine or device which

is specially designed or manufactured for use in the operation

of-any Class 111 gaming activity including those devices

described in standards of operation and management pursuant to

section 7(c)(i) of this Compact, video facsimile games, lottery

tickets, lottery on-line computer equipment, lottery drawing

equipment, and pari-mutuel electronic totalizator systems.

(j) "Gaming facility" means any room or rooms in which

Class I11 Gaming as authorized by this Compact is conducted on

the Reservation.

(k) "Gaming operation" means any enterprise operated by

the Tribe on its Reservation for the conduct of any form of

Class I11 gaming in any gaming facility.

(1) "Gaming school" means any enterprise organized to

provide specialized training to gaming employees for the

conduct of Class I11 gaming, other than programs operated by

the Tribal gaming operation.

(m) "Gaming services" means the providing of any goods or

services to the Tribe directly in connection with the operation

of Class I11 gaming in a gaming facility, including maintenance

or security services for the gaming facility, junket services,

gaming schools, printing or manufacture of lottery or

pari-mutuel betting tickets, laboratory testing of gaming

equipment including video facsimile machines or lottery

tickets, and manufacture, distribution, maintenance or repair

of gaming equipment.

(n) "Junket services" means any arrangement to facilitate

the attendance at a gaming facility of patrons selected by

reason of their propensity to gamble by providing to such

pafrons any consideration including cash or rebates or reduced

charges for goods or services such as transportation, lodging,

food, beverage, or entertainment; provided, however, that the

term shall not include enterprises which function solely to

provide common transportation to a gaming facility to the

public without limitation to selected patrons.

(0) "Lottery" means any game for which tickets are sold,

the winning ticket or tickets being secretly predetermined or

ultimately selected in a chance drawing, and in which the

holders of winning tickets receive money or something of value.

(p) "National Indian Gaming Commission" means the

Commission~established pursuant to Section 5 of the Act, 25

U.S.C. § 2704.

(q) "Off track betting" means pari-mutuel betting on

racing results which is conducted on premises other than the

site of the race.

(r) "Pari-mutuel" means a betting system in which all

persons who bet on any contender in a jai alai game or in an

animal race for any position for which bets are taken in such

game or race share in an established prize pool of similar bets.

(s) "Principal" means with respect to any enterprise: (i)

each of its officers and directors; (ii) each of its principal

management employees, including any chief executive officer,

chief financial officer, chief operating officer, or general

manager; (iii) each of its owners or partners if an

unincorporated business; (iv) each of its shareholders who owns

more than ten per cent of the shares of the corporation if a

co~poration; and (v) each person other than a banking

institution who has provided financing for-the enterprise

constituting more than ten per cent of the total financing of

the enterprise.

(t) "Reservation" means the Indian lands of the

Mashantucket Pequot Tribe within the State of Connecticut as

defined by Section 4(4) of the Act, 25 U.S.C. 52703(4),

including all lands within the Mashantucket Pequot Reservation

as defined by 25 U.S.C. 51752(7) and all lands within the State

of Connecticut title to which is either held in trust by the

United States for the benefit of the Tribe or held by the Tribe

subject to restriction by the United States against alienation;

provided, that the term "Reservation" shall not include those

lands acquired by the United States in trust for the benefit of

the Tribe after October 17, 1988 which are excluded from the

provisions of the Act pursuant to Section 20 of the Act, 25

U.S.C. s2719;

(u) "Simulcasting" means the closed-circuit television or

radio transmission of a race at one racetrack to another

racetrack or facility at the same time the race is being

conducted.

(v) "State" means the State of Connecticut, its authorized

officials, agents and representatives.

(w) "State gaming agency" means the Division of Special

Revenue of the State or such other agency of the State as the

State may from time to time designate by written not.ice to the

Tqibe as the single state agency responsible for oversight of

Class I11 Gaming as authorized by this Compact.

( x ) "State law enforcement agency" means the Connecticut

State Police or such other law enforcement agency of the State

as the State may from time to time designate by written notice

to the Tribe as the law enforcement agency of the State which

will have primary responsibility for law enforcement with

respect to Class I11 Gaming activities on the Reservation.

(y) "Telephone betting" means the acceptance of bets in a

lottery or pari-mutuel pool by telephone from persons who have

deposited funds in a deposit account established for such

purpose. -

(z) "Tribal gaming agency" means the Mashantucket Pequot

Tribal Gaming Commission or such other.agency of the Tribe as

the Tribe may from time to time designate by written notice to

the State as the single tribal agency responsible for

regulatory oversight of Class I11 Gaming as authorized by this

Compact.

(aa) "Tribal law enforcement agency" means the police

force of the Mashantucket Pequot Tribe established and

maintained by the Tribe pursuant to the Tribe's powers of

self-government to carry out law enforcement within the

Reservation.

(bb) "Tribe" means the Mashantucket Pequot Tribe, its

authorized officials, agents and representatives. .

(cc) "Video facsimile" means any mechanical, electrical or

other device, contrivance or machine, which, upon insertion of

a coin, currency, token or similar object therein, or upon

payment of any consideration whatsoever, is available to play

or operate, the play or operation of which is a facsimile of a

game of chance, and which may deliver or entitle the person

playing or operating the machine to receive cash or tokens to

be exchanged for cash or to receive any merchandise or thing of

value, whether the payoff is made automatically from the

machine or in any other manner whatsoever.

SECTION 3. Authorized Class I11 Gamina.

(a) Authorized aames. The Tribe may conduct, only within

the Reservation, and subject to the terms and conditions of

this Compact, any or all of the following:

(i) The following games of chance:

(A) Blackjack;

(B) Poker;

(C) Dice;

(D) Money-wheels;

v (ii)

(iii)

(iv)

(vii)

(viii)

(E) Roulette;

(F) Baccarat;

(G) Chuck-a-luck;

(H) Pan game;

(I) Over and Under;

(J) Horse race game;

(K) Acey-ducey;

(L) Reat the dealer;

(M) Bouncing ball.

Any bazaar game not listed in sub-section (i),

but only if conducted solely for merchandise

prizes.

Any lottery game.

Off-track pari-mutuel betting including telephone

betting on animal races.

Pari-mutuel betting, through simulcasting, on

animal races.

Pari-mutuel betting on jai alai games conducted

on the Reservation.

Pari-mutuel betting on dog racing conducted on

the-Reservation.

Pari-mutuel betting on horse racing conducted on

the Reservation, but only to the extent

authorized in accordance with section 15 of this

Compact.

Video facsimiles of any game of chance listed in

sub-section 3(a)(i), but only to the extent

authorized in accordance with section 15 of this

Compact.

(XI Telephone betting on any lottery game, but only

to the extent authorized in accordance with

section 15 of this Compact.

(b) Authorized aamina facilities, (i) The Tribe may

establish gaming facilities on the Reservation for the

operation of any games of chance as authorized pursuant to

sub-section (a)(i) of this section and, only to the extent

authorized pursuant to section 15, games authorized pursuant to

sub-section (a)(ix) of this section; (ii) The Tribe may

conduct bazaar games in any location on the Reservation,

whether separately from or together with other Class I11

gaming; (iii) the Tribe may operate lottery games, including

only to the extent authorized pursuant to section 15, telephone

betting on such games, on the Reservation; (iv) the Tribe may

establish gaming facilities on the Reservation for the

operation of any off-track pari-mutuel betting, including

telephone betting, and simulcasting as authorized pursuant to

sub-sections (a)(iv) and (a)(v) of this section; (v) the Tribe

may establish gaming facilities on the Reservation for the

operation of pari-mutuel betting on jai alai conducted at a

fronton on the Reservation; (vi) the Tribe may establish gaming

facilities on the Reservation for the operation of pari-mutuel

betting on dog racing conducted at a racetrack on the

Reservation; (vii) the Tribe may establish gaming facilities on

the Reservation for the operation of pari-mutuel betting on

horse racing conducted at a racetrack on the Reservation only

to the extent authorized pursuant to section 15.

(c) Authorized forms of ~ a m e n t . All payments for wagers

made in authorized forms of Class I11 gaming conducted by the

Tribe on its reservation, including the purchase of chips,

plaques or tokens for use in wagering, shall be made by cash,

cash equivalent, check or credit card.

(d) Prohibited Class I11 aamina. The Tribe may not

conduct any form of Class I11 gaming which is not expressly

enumerated in section 3(a) of this Compact unless this Compact

is amended pursuant to section 17(c) of this Compact.

. . . (e) Prohibition on attendance of minors. No-person under

the minimum age for purchase of alcoholic beverages under the

laws of the State shall be admitted into any gaming facility

other than facilities limited to the play of bazaar games, nor

be permitted to place any wager, directly or indirectly, other

than on bazaar games; provided, however, that minors may

receive lottery tickets or chances as gifts; and further

provided, however, that a person over the age of majority may

be employed in the gaming facilities provided that they are

licensed in accordance with the provisions of section five and

are not employed in the service of intoxicating liquors.

(f) Com~liance with re~ortina reuuirements. The Tribe

shall comply with all applicable reporting and withholding

requirements of the Internal Revenue Service relating to all

forms of wagering conducted by the Tribe and shall maintain

accurate records of all such reports and returns, and shall

implement policies and procedures adequate to assure compliance

with such obligations in each of its gaming operations.

(g) Tort remedies for patrons, The ~ r i b e will establish

reasonable procedures for the disposition of tort claims

arising from alleged injuries to patrons of its gaming

facilities. The Tribe shall not be deemed to have waived its

sovereign immunity from suit with respect to such claims by

virtue of any provision of this Compact, but may adopt a

remedial system analagous to that available for similar claims

arising against the State or such other remedial system as may

be appropriate following consultation with the State gaming

agency.

(h) Oraanization of tribal operations. The Tribe shall

disclose to the State gaming agency its program of

instructional and on-the-job training and its system of

internal organization for each of its gaming operations

including a compendium of all positions involved in the

operation of its gaming facilities, including staffing and

supervisory positions involved in each table gaming activity

conducted pursuant to section 3(a)(i), and the persons

designated to occupy each position from time to time, and shall

promptly notify the State gaming agency of any change in such

training programs or table of organization or in the persons

designated for any position. The Tribal gaming agency shall

ensure that any person designated to occupy a position in the

gaming facilities is properly trained and qualified for such

position.

SECTION 4. Law enforcement matters relatina to Class I11

Gamina.

(a) State crlmlnal lurlsdlctlon* . . . . . . The State of Connecticut

shall have jurisdiction to enforce all criminal laws of the

State which may prohibit any form of Class I11 Gaming on the

Reservation against any person engaged in Class I11 Gaming on

the Reservation unless such person is engaged in a form of

Class 111 Gaming listed in section 3(a) of this Compact and

conducted by the Tribe. The State of Connecticut shall also

have jurisdiction to enforce all other criminal laws of the

State which are consistent with the provisions of this Compact

on the Reservation, including enforcement within the gaming

facilities.

(b) Po wers of State law enforce ment officers. Law

enforcement officers of the State of Connecticut shall be

accorded free access to any gaming facilities for the purpose

of maintaining public order and public safety and enforcing

applicable criminal laws of the State as permitted hereunder,

and personnel employed by the Tribal gaming operation shall for

such purposes provide state law enforcement officers access to

locked and secure-areas of the gaming facilities in accordance

with the standards of maintenance and operation promulgated

pursuant to section 7, 8 and 9 of this Compact. The State law

enforcement agency may station a resident officer at the

Reservation to coordinate law enforcement within the

Reservation generally, including enforcement by officers of the

Tribal law enforcement agency.

(c) powers of Tribal law enforcement officers, Law

enforcement officers of the Mashantucket Pequot Tribe may

exercise concurrent authority with that of law enforcement

officers of the State of Connecticut to maintain public order

and public safety and to enforce the applicable ordinances of

the Tribe and to make arrests for violation of applicable

criminal laws of the State; provided, that persons arrested by

officers of the tribal law enforcement agency for violations of

criminal laws of the State shall be transferred as promptly as

may be feasible to the jurisdiction of State law enforcement

officers and the tribal law enforcement agency shall comply

with all reasonable requirements of State law enforcement

officers and agencies in order to assist in the prosecution of

such offenders.

5. Licensina of Gamina Emvlovees

(a) Reauitements for emvlovee licensinq

No person may commence or continue employment as a gaming

employee unless he is the holder of a valid current gaming

employee license issued by the State gaming agency in

accordance with the provisions of this section.

(b) Procedure for license avvlications

Each applicant for a gaming employee license shall submit a

completed license application to the State gaming agency, with

a copy thereof to the tribal gaming agency, on forms required

and provided by the State gaming agency. The Tribe, or

registered gaming service enterprise, as the case may be, shall

certify on said application that submission of the application

has been approved. Such gaming employee license application

forms shall contain such information, documentation and

assurances as may be required by the State gaming agency

concerning the applicant's personal and family history,

personal and business references, criminal conviction record,

business activities, financial affairs, gaming industry

experience, gaming school education and general educational

background. Each completed license application submitted to

the state gaming agency pursuant to the provisions hereof shall

be accompanied by the applicant's fingerprint card(s) and

photograph(s) in form as required by the State gaming agency.

Promptly upon receipt of a completed license application, the

State gaming agency shall forward a copy thereof to the State

law enforcement agency.

(c) Backaround Investiaation of Applicants

The state gaming agency shall promptly upon receipt of an

application for a gaming employee license cause both State and

Federal criminal record checks to be done on the applicant to

determine whether the applicant has any criminal history and

shall so advise the State law enforcement agency. The State

law enforcement agency may undertake such further investigation

of the applicant and applicant's background as it deems

appropriate and shall, as soon as is practicable after receipt

of the completed license application, report to the State

gaming agency and the Tribal gaming agency (to the extent

permitted by law) on the results of such investigation.

Unless the State criminal record check undertaken by the Iwl

state gaming agency within ten days of the receipt of a

completed application discloses that the applicant has a

criminal history, or unless other grounds sufficient to

disqualify the applicant pursuant to sub-section (e) are

apparent on the face of the application, the State gaming

agency shall upon request of the Tribal Operation issue a

temporary gaming employee license to the applicant which

s b l l expire and become void and of no effect upon the

determination by the State gaming agency of the applicant's

suitability for a gaming employee license. During the

twelve-month period immediately following the effective date of

this Compact as provided herein, any applicant who may file a

copy of a current valid gaming employee license issued by the

State of New Jersey together with his completed application

shall be immediately issued a temporary gaming employee license

by the State gaming agency pending determination of such

applicant's suitability or eligibility for a gaming employee

license as provided in subsection (e) of this section.

(e) Action bv State aamina aaencv

The State gaming agency shall, as soon as is practicable

after receipt of a completed license application, either grant

or deny the license. The State gaming agency may deny a gaming

edployee license to any applicant who:

(i) has been determined to be a person whose prior

activities, criminal record, if any, or reputation,

habits and associations pose a threat to the effective

regulation of gaming or create or enhance the chances

of unfair or illegal practices, methods, and

activities in the conduct of the gaming activities

permitted hereunder; provided, however, that the State

shall not apply standards for approval of licenses

pursuant to this section more rigorously than those

actually applied in the approval of employee licenses

in gaming enterprises operated or regulated

C exclusively by the State; or

(ii) has failed to provide any information reasonably

required to investigate the application for a gaming

employee license or to reveal any fact material to

such application, or has furnished any information

which is untrue or misleading in connection with such

application.

(f) Duration of license and renewal

Any gaming employee license issued by the State gaming

agency shall be effective for not more than one year and shall

expire on the thirty-first day of October of each year;

provided, that a -licensed employee who has applied for renewal

may continue to be employed under the expired license until

final action is taken on the renewal application by the State

gaming agency. Previously licensed applicants or applicants

for renewal shall provide currently updated application

material but will not be required to re-submit historical data

already available to the State gaming agency. No additional

background investigation of an applicant for renewal shall be

required unless new information concerning the renewal

applicant's continuing suitability or eligibility for a license

comes to the attention of either the State gaming agency or the

State law enforcement agency.

(9) Revocation or sus~ension of license

The State gaming agency or the State law enforcement agency

may investigate any person who holds a gaming employee license

at any time and the State gaming agency may suspend or revoke

any gaming employee license issued hereunder if new information

concerning facts arising either prior to or.since the issuance

of the original license, or any renewal thereof, comes to the

attention of the State gaming agency which information would

justify denial of such original license, or any renewal

thereof, pursuant to sub-section (e) of this section; provided,

however, that no license shall be revoked or suspended except

after such notice and hearing as is generally required for

similar administrative actions under the administrative

procedures applicable to agencies of the state.

(h ) Badaes

All licensed gaming employees actively employed by the

Tribe and having access to the gaming facilities shall upon the

commencement of such employment be provided with identification

badges as may be required by the State gaming agency which

shall be displayed or carried within the gaming facilities as

the applicable Standard of Operation may require and the Tribe

shall employ its best efforts to recover such badges from an

employee upon the termination of employment at a gaming

facility.

(i) Avveal of license decisions

Decisions of the State gaming agency to deny, suspend, or

revoke a license pursuant to this section, following any

administrative review or appeal which may be permitted by the

State gaming agency in accordance with procedures which it may

establish, constitutes final agency action subject to judicial

review in the manner provided by the laws of the State for

judicial review of administrative actions affecting similar

rights.

(j) Investiaation of non-aamina emvlovees

The State law enforcement agency may investigate misconduct

of employees of the Tribe who are not gaming employees but who

are employed in ancillary facilities located within the same

building as any gaming facility, and such employees shall be

dismissed by the Tribe from such employment upon notification

by the State law enforcement agency that their conduct in the

course of their employment in such ancillary facilities poses a

threat to the effective regulation of gaming or creates or

enhances the dangers of unfair or illegal practices, methods

and activities in the conduct of gaming, subject to the same

rights of appeal as are provided in sub-section (i) above.

6 . Reaistration of Gamina Service Entenrises

(a) Reauirement for reaistration

No enterprise may provide gaming services or gaming

equipment to the Tribe unless it is the holder of a valid

current gaming services registration issued by the State gaming

agency in accordance with the provisions of this section;

provided, however, that so long as the Tribe discloses the

identity of such enterprise together with the value and nature

of services or equipment provided by the enterprise to the

State gaming agency, such enterprise need not register pursuant

to this section if either:

(i) the enterprise has a current valid license to provide

gaming equipment or gaming services from the State

gaming agency under regulations of the State

applicable to gaming operated or licensed by the

State; or

(ii) the enterprise has a current valid registration as a

gaming services enterprise from the gaming regulatory

agencies of the State of New Jersey and provides its

consent for the disclosure to the State gaming agency

of all information regarding such enterprise held by

the gaming regulatory agencies of the State of New

Jersey, and the State gaming agency is able to secure

disclosure of such information; provided further,

however, that the rights conferred pursuant to either

sub-section (i) or (ii) of this sub-section may be

revoked or suspended by the State gaming agency in the

same manner and for the same reasons as provided in

sub-section (g) of this section.

(b) Procedure for reaistrati~n

Each applicant for a gaming service registration shall

submit a completed registration application to the State gaming

agency, with a copy thereof to the Tribal gaming agency, on

forms required and provided by the State gaming agency. The

Tribe shall certify on said application that submission of the

application has been approved. Such gaming service

registration application shall contain such information,

documentation and assurances as may be required by the State

gaming agency which shall identify all of said applicant's

principals and which shall concern the applicant's and each

such principal's personal and family history, personal and

business references, criminal conviction record, business

activities, financial affairs, prior gaming industry experience

and general education background; all of the foregoing as may

be applicable to such applicant or such principal. Each

completed gaming service registration application submitted to

the State gaming agency pursuant to the provisions hereof shall

be accompanied by the fingerprint card(s) and photograph(s) of

each principal of the applicant in form as required by the

State gaming agency. Promptly upon receipt of a completed

registration application, the State gaming agency shall forward

a copy thereof to the State law enforcement agency.

(c) Backaround Investiaation of A ~ ~ l i c a n t s

The State gaming agency and the State law enforcement

agency shall promptly upon receipt of an application for a

gaming services registration conduct an investigation of the

applicant and each of it principals. Such investigation shall

include criminal record checks to be done on each of

applicant's principals and such other investigation of

applicant and its principals as may be deemed appropriate by

the State gaming and state law enforcement agencies. The State

law enforcement agency shall, as soon as is practicable after

receipt of the completed gaming services registration

application, report to the State gaming agency and the Tribal

gaming agency (to the extent permitted by law) on the results

of-its investigation.

(a) Te m~orarv Rea istration

During the twelve-month period immediately following the

effective date of this Compact as provided herein, any

applicant for a gaming service registration who may file a copy

of a current valid gaming service industry registration issued

by the State of New Jersey together with its completed

application shall be immediately issued a temporary gaming

service registration by the State gaming agency pending

determination of such applicant's suitability or eligibility

for a gaming service registration pursuant to subsection (e) of

this section. -

(el Action by State aamina aaen-.

The State gaming agency shall, as soon as practicable after

receipt of a completed application for a gaming service

registration, either grant or deny the application. The State

gaming agency may deny a gaming service registration to any

applicant upon its determination that the applicant, or any

principal identified with such applicant:

(i) is a person or entity whose prior activities, criminal

record, if any, or reputation, habits and associations

pose a threat to the effective regulation of gaming or

create or enhance the chances of unfair or illegal

practices, methods, and activities in the conduct of

the gaming activities permitted hereunder; provided,

however, that the State shall not apply standards for

approval of registrations pursuant to this section

more rigorously than those actually applied in the

approval of similar licenses in gaming enterprises

operated or regulated exclusively by the State; or

(ii) has failed to provide any information reasonably

required to investigate the application for a gaming

service registration or to reveal any fact material to

such application, or has furnished any information

which is untrue or misleading in connection with such

application.

(f) Duration of reaistration and renewal

Any gaming services registration issued by the State gaming

agency shall be effective for not more than one year and shall

expire on the thirty-first day of October of each year;

provided, that a registered enterprise that has applied for

renewal may continue to provide services under the expired

registration until final action is taken on the renewal

application by the State gaming agency. Previously registered

applicants or applicants for renewal shall provide currently

updated application material but will not be required to

re-submit historical data already available to the State gaming

agency. No additional background investigation of an applicant,

for registration renewal shall be required unless new

information concerning the renewal applicant's continuing

suitability or eligibility for a license comes to the attention

of either the State gaming agency or the State law enforcement

agency.

(g) Revocation or sus~ension of reaistration

The State gaming agency or the State law enforcement agency

may investigate any enterprise or principal of such enterprise

which holds a gaming services registration license at any time

and the State gaming agency may suspend or revoke any gaming

services registration issued hereunder if new information

concerning facts arising either prior to or since the issuance

of the original registration, or any renewal thereof, comes to

the attention of the State gaming agency which information

would justify denial of such original license, or any renewal

thereof, pursuant to sub-section (e) of this section; provided,

however, that no registration shall be revoked or suspended

except after such notice and hearing as is ordinarily required

for similar administrative actions under the administrative

procedures applicable to agencies of the State; and further

provided, that the enterprise shall be entitled to any payment

due for services provided or goods delivered prior to the

effective date of suspension or revocation of its registration.

(h) . .

Decisions of the State gaming agency to deny, suspend, or

revoke a registration pursuant to this section, following any

administrative review or appeal which may be permitted by the

State gaming agency in accordance with procedures which it may

establish, constitutes final agency action subject to judicial

review in the manner provided by the laws of the State for

judicial review of administrative actions affecting similar

rights.

reaistration - (i) Fee for

Any enterprise filing an application for a gaming services

registration pursuant to this section shall pay to the State

gaming agency a fee sufficient to compensate the State gaming

agency for the costs of review of the registration

applications; provided, however, that such fee shall not be

increased above one thousand five hundred dollars for each

applicant without prior approval of the Tribal gaming agency,

but any balance of such costs not recovered as a result of such

limitation on fees shall be included in the assessment of costs

pursuant to section 11 of this Compact.

(j) Investiaation of non-aamina enterprises

Any enterprise which provides goods or services to a Tribal

gaming operation other than gaming services or gaming equipment

in a total amount exceeding the sum of $50,000.00 in a single

twelve month period, and any labor organization seeking to

represent employees of a Tribal gaming operation, shall be

identified by the Tribe to the State gaming agency and shall

agree to cooperate with the State gaming agency and the State

law enforcement agency in any investigation deemed necessary by

either such agency relative to the fitness of such enterprise

or labor organization to engage in business with a gaming

operation, or relative to the conduct of such enterprise or

labor organization in connection with such activity. The State

gaming agency may bar such enterprise from providing goods or

services to the Tribal gaming operation or such labor

organization from receiving dues from licensed employees of the

Tribal gaming operation, or may bar the principal of any such

labor organization from representing such employees, upon a

determination that such enterprise or labor organization or a

principal thereof is a person or entity whose prior activities,

criminal record, if any, or reputation, habits and assocations

pose a threat to the effective regulation of gaming or create

or enhance the dangers of unfair or illegal practices, methods

and activities in the conduct of gaming; provided, however,

that such enterprise or labor organization may appeal such

determination in the manner provided pursuant to sub-section

(h)

-

SECTION 7. Standards of operation and manaaement for a a m a

~f chance.

(a) Ado~tion of standards of operation and manaaement.

The Tribal gaming agency shall adopt standards of operation and

management to govern all gaming operations utilizing the

authority of the Tribe to operate games of chance as defined in

section 3(a)(i) of this Compact. Such standards shall protect

the public interest in the integrity of the gaming operations

and shall reduce the dangers of unsuitable, unfair or illegal

practices and methods and activities in the conduct of gaming.

The initial standards of operation and management shall be

those set forth in Appendix A until different standards are

adopted by the Tribal gaming agency. The Tribal gaming agency

shall notify the State gaming agency of any revision of the

standards of operation and management and shall either (i)

certify that the revisions to the standards will have no

material effect on the manner in which the standards protect

the public interest in the integrity of the gaming operations

and reduce the dangers of unsuitable, unfair or illegal

practices and methods and activities in the conduct of gaming;

or (ii) request the approval of the State gaming agency for

such revised standards, which approval shall be deemed granted

unless disapproved within sixty days of submission of the

revised standards; the State gaming agency shall approve the

revised standards upon request unless it finds that they would

have a material adverse impact on the public interest in the

integrity of the gaming operations, and shall disapprove only

such portions of any proposed revised standards which are

determined to have a material adverse impact on such public

interest, setting forth with specificity the reasons for such

disapproval; any disapproval of revised standards by the State

gaming agency shall be subject to review in the manner provided

by the laws of the State for review of administrative decisions

which are subject to judicial review.

-28-

(b) Addltlonal standarn a ~ ~ l i c a b l e to aames of chance* . .

The following additional standards shall apply to the w

operation by the Tribe of games of chance as permitted by this

compact :

(i) the Tribe shall maintain the following logs as

written or computerized records which shall be available

for inspection by the State gaming agency in accordance

with section 13(b) of this Compact: a surveillance log

recording all surveillance activities in the monitoring

room of the gaming facility; a security log recording all

unusual occurrences for which the assignment of a security

department employee is made; a cashier's cage log recording

all exchanges of gaming chips for cash by persons who

cannot reasonably be thought to have been gaming; a credit

log recording all counter checks exchanged and all checks

received for redemption, consolidation or substitution; a

machine entry log recording all occasions on which a video

facsimile machine is opened by any mechanic or attendant,

except to the extent that such entries may be automatically

recorded by a computer system activated by each entry; and

a machine location log, recording the location and each

movement of any video facsimile machine within the gaming

facility.

(ii) The Tribal gaming agency shall establish a list

of persons barred from the gaming facilities because their

criminal history or association with career offenders or

career offender organizations poses a threat to the

integrity of the gaming activities of the Tribe. The Tribe

shall employ its best efforts to exclude persons on such

list from entry into its gaming facilities. The Tribe

shall also exclude persons engaging in disorderly conduct

or other conduct jeopardizing public safety in the gaming

facility.

(iii) The Tribal gaming agency shall require the

audit of the gaming activities of the Tribe, not less than

annually, by an independent certified public accountant, in

accordance with the auditing and accounting standards for

audits of casinos of the American Institute of Certified

Public Accountants.

(iv) The Tribal gaming agency shall notify the State

gaming agency of the rules of each game of chance which

will be operated by the Tribe and of any change in such

rules. Summaries of the rules of each game relevant to the

method of play and odds paid to winning bets shall be

visibly displayed or available in pamphlet form in the

gaming facility, and betting limits applicable to any

gaming table shall be displayed at such gaming table.

Rules of each-game shall assure that the game will be

operated in a manner which is honest, fair to patrons and

amenable to regulatory oversight. Rules for games

identified in sections 3(a)(i)(A), (B), (C), (D), (E), (F),

(G), (J) and (K) shall be based upon such games as commonly

practiced in other gaming jurisdictions in the United

States with such variations in the manner of wagering or

play as do not fundamentally alter the nature of the game

and as the Tribal gaming agency may approve. Rules for

games identified in sections 3(a)(i)(H), (I), (L), and (M)

shall be submitted for approval to the State gaming agency,

which approval shall be granted if they are consistent with

the nature of such games as permitted at Las Vegas nights

operated under the laws of the State and if they assure

that such games will be operated in a manner which is

honest, fair to patrons and amenable to regulatory

oversight. The Tribe will provide the State gaming agency

with ten days' advance notice of the rules of each game and

any modification thereof, and will provide adequate notice

to patrons of the gaming facilities to advise them of the

applicable rules in effect.

(v) The Tribe shall maintain a record of all

complimentary services provided to patrons of its gaming

facilities or their guests, including either the full

retail price of such service or item if the same service or

item is normally offered for sale to patrons in the

ordinary course of business at the gaming facility, or the

cost of the service or item to the Tribe if not offered for

sale to patrons in the ordinary course of business. If the

complimentary service or item is provided to a patron by a

third party on behalf of the Tribe, such service or item

shall be recorded at the actual cost to the Tribe of having

the third party provide such service or item. A log

recording all such complimentary services shall be

available for inspection by the State gaming agency in

accordance with section 13(b) of this Compact.

(vi) no person shall be permitted to bear firearms of any

kind into such gaming facilities except for members of the

State law enforcement agency and the Tribal law enforcement

agency;

(vii) the Tribal operation shall maintain a closed circuit

television system in accordance with the standards set

forth in sections 6(2) and 6(3) of Appendix A, and shall

not modify such standards without the agreement of the

State gaming agency. The Tribal gaming operation shall

provide the State gaming agency with copies of its floor

plan and closed circuit television system and any

modifications thereof for review by the State gaming

agency. If the floor plan or closed circuit television

system do not provide unobstructed camera views in

accordance with such standards, the Tribal operation shall

modify such floor plan or closed circuit television system

in order to remedy such deficiency.

(viii) the Tribal operation shall maintain a cashier's

cage in accordance with the standards set forth in section

7(3) of Appendix A, and shall not modify such standards

without the agreement of the State gaming agency. The

State gaming agency may review cashier's cage security. ~f

the cashier's cage does not comply with the security

standards set forth in said Appendix, the Tribal operation

shall modify its cashier's cage to remedy such deficiency.

(ix) the Tribal operation shall provide the State gaming

agency with a description of its minimum requirements for

supervisory staffing for each table gaming pit operated in

its gaming facilities, and in the event that the State

gaming agency regards such supervisory staffing as

inadequate to protect the integrity of the table games, the

Tribal operation and State gaming agency shall promptly

confer in good faith in an effort to reach agreement on

supervisory staffing requirements; upon written notice to

the Tribal operation by the State gaming agency that

agreement cannot be reached between the State gaming agency

and the Tribal operation, the dispute shall be submitted to

binding arbitration in accordance with the rules and

procedures of the American Arbitration Association; both

the Tribal operation and the State gaming agency shall

submit their positions to the arbitrator within twenty days

of receipt of such written notice, and the arbitrator shall

render a binding decision within sixty days following the

written notice of a dispute. ,

(c) Technical standards for video facsimile aames. . .

Notwithstanding the provisions of section 7(a) of this Compact

or section 31 of Appendix A, when any video facsimile of a game

of chance identified in section 3(a)(i) has been approved by

the gaming regulatory agencies of the State of New Jersey, then

any substantially similar version of such game must be approved

by the gaming regulatory agencies of the State of New Jersey in

accordance with regulations in effect under the gaming

regulatory laws of New Jersey, and the Tribe may operate

(subject to the provisions of section 15(a)) any video

facsimile of such game which has been approved by the gaming

regulatory agencies of the State of New Jersey. When no

substantially similar version of a video facsimile game has

been approved by the gaming regulatory agencies of the State of

New Jersey, then such new game may be approved either in

accordance with regulations in effect under the gaming

regulatory laws of New Jersey or in accordance with section 31

of-Appendix A. Notwithstanding the provisions of sub-section

(a) of this section, the Tribal gaming agency shall not revise

the standards of operation relating to technical standards for

video facsimile games and set out as section 31 of Appendix A

without the prior approval of the State gaming agency. Said

standards may be revised by written agreement between the State

gaming agency and the Tribal gaming agency following the

written recommendation and detailed explanation of the proposed

amendment to such standards by the gaming test laboratory

designated in accordance with such standards.

SECTION 8. Standards of o~eration and manaaement for

par1 - mutuel bettina fat ilities.

(a) ~dovtion of standards of operation and manaaement.

The Tribal gaming agency shall adopt standards of operation and

management to govern all gaming operations utilizing the

authority of the Tribe to operate pari-mutuel betting on racing

and jai alai, including off-track betting, simulcasting and

telephone betting, as set forth in sections 3(a)(iv), 3(a)(v),

3(a)(vi) and 3(a)(vii) of this Compact. Such standards shall

protect the public interest in the integrity of the gaming

operations and shall reduce the dangers of unsuitable, unfair

or illegal practices and methods and activities in the conduct

of gaming. The initial standards of operation and management

shall be those set forth in Appendix B until different

standards are adopted by the Tribal gaming agency. The ~ r i b a l

gaming agency shall notify the State gaming agency of any

revision of the standards of operation and management and shall

either (i) certify that the revisions to the standards will

have no material effect on the manner in which the standards

protect the public interest in the integrity of the gaming

operations and reduce the dangers of unsuitable, unfair or

illegal practices and methods and activities in the conduct of

gaming; or (ii) request the approval of the State gaming agency

for such revised standards, which approval shall be deemed

granted unless disapproved within sixty days of submission of

the revised standards; the State gaming agency shall approve

the revised standards upon request unless it finds that they

would have a material adverse impact on the public interest in

the integrity of the gaming operations, and shall disapprove

only such portions of any proposed revised standards which are

determined to have a material adverse impact on such public

interest, setting forth with specificity the reasons for such

disapproval; any disapproval of revised standards by the State

gaming agency shall be subject to review in the manner provided

by the laws of the State for review of administrative decisions

which are subject to judicial review.

(b) Calculation of required takeout, The Tribal operation

conducting any form of pari-mutuel betting pursuant to this

section shall distribute all sums deposited in any pari-mutuel

program to the holders of winning tickets therein, less the

takeout percentage which shall be no less than the minimum

takeout percentage as determined in accordance with this

sub-section plus one half of the breakage to the dime of the

ampunt so retained. The minimum takeout percentage shall be:

(i) for pari-mutuel betting on dog racing, nineteen

percent (or such other per cent as may be the gross takeout

required under the laws of the State for licensees of the

State conducting pari-mutuel betting on dog racing); less

eight per cent (or such other per cent as may be the

maximum rate of tax imposed on th'e total amount of money

wagered at dog racing events under the laws of the State).

(ii) for pari-mutuel betting on jai alai, eighteen

percent (or such other per cent as may be the gross takeout

required under the laws of the State for licensees of the

State conducting pari-mutuel betting on jai alai); less six

and three quarters per cent (or such other per cent as may

be the maximum rate of tax imposed on the total amount of

money wagered at jai alai events under the laws of the

State).

(iii) for pari-mutuel betting on horse racing,

seventeen percent (or such other per cent as may be the

gross takeout required under the laws of the State for

licensees of the State conducting pari-mutuel betting on

horse racing); less eight and three quarters per cent (or

such other per cent as may be the maximum rate of tax

imposed on the total amount of money wagered at horse

racing events under the laws of the State).

(iv) for pari-mutuel off track betting, seventeen per

cent (or such other per cent as may be the gross takeout

required under the laws of the State for the State off

track betting system), or nineteen per cent with respect to

the multiple forms of wagering known as daily double,

exacta and quinella (or such other per cent as may be the

gross takeout required with respect to such wagering under

the laws of the State for the State off track betting

system), or twenty-five per cent with respect to the

multiple forms of wagering on three or more animals .(or

such other per cent as may be the gross takeout permitted

with respect to such wagering under the laws of the State

for the State off track betting system); in each case less

eight and three quarters per cent (or such other per cent

as may be the-maximum rate of tax imposed on the total

amount of money wagered at any pari-mutuel horse racing,

dog racing or jai alai events under the laws of the State).

(c) Testina of eaui~ment. The State gaming agency may

perform such tests on totalisator equipment employed in the

conduct of Tribal pari-mutuel wagering and any off track

betting computer system as it may reasonably require to verify

the integrity and accuracy of such systems.

(dl Special pari mutuel - waaers. The Tribal gaming

operations may, only with the approval of the State gaming

agency, conduct special forms of pari-mutuel wagering at its

off-track betting operations and at any race track or jai alai

fronton located on the Reservation, in addition to those types

of wagers described in sections 6, 7, and 58 through 62 of

Appendix B. The State may test any computer hardware or

software required for the operation of such special wagering

and shall grant its approval so long as the special wager will

bcconducted in a manner which is honest, fair to the patrons,

and amenable to regulatory oversight.

(e) Security Drocedures for audio-video sianals. The

Tribe shall consult with the State gaming agency regarding the

adoption of security procedures for audio and video signals

utilized in the operation of any off track betting system and w

shall adopt security procedures substantially corresponding to

those utilized by the State for corresponding types of audio

and video signals or such other procedures as may be adopted by

the Tribal gaming agency and approved by the State gaming

agency.

( £ 1 Com~uter-recordina of waaerina information. The

totalisator equipment selected for use at each of the Tribe's

pari-mutuel wagering operations shall be capable of generating

a computer log of wagering activities in a form approved by the

State gaming agency to enable the State gaming agency to

provide computer verification of the accuracy and integrity of

wagering activities.

. . (g) Bettina limits to prevent manipulation, The Tribe

shall reject any wager at a pari-mutuel wagering operation

which, in the judgment of the Tribal gaming operation, is so

large with respect to the size of any wagering pool as to

enable an individual placing such wager to manipulate the

wagering pool for unfair advantage over other patrons.

(h) Pament medium for waaers. All wagers at pari-mutuel

windows of any Tribal gaming operation shall be in United

States currency; provided, however, that nothing herein shall

restrict the right of the Tribe to provide check cashing or

cash advance facilities for use in conjunction with credit

cards for the convenience of patrons.

SECTION 9. Standards of operation and manaaement for lottery

aamina . (a) Ado~tion of standards of operation and manaaement.

The Tribal gaming agency shall adopt standards of operation and

management to govern all gaming operations utilizing the

authority of the Tribe to conduct lottery gaming, as set forth

in section 3(a)(iii) of this Compact. Such standards shall

protect the publie interest in the integrity of the gaming

operations and shall reduce the dangers of unsuitable, unfair

or illegal practices and methods and activities in the conduct

of gaming. The initial standards of operation and management

shall be those set forth in Appendix C until different

standards are adopted by the Tribal gaming agency. The Tribal

gaming agency shall notify the State gaming agency of any

revision of the standards of operation and management and shall

either (i) certify that the revisions to the standards will

have no material effect on the manner in which the standards

protect the public interest in the integrity of the gaming

operations and reduce the dangers of unsuitable, unfair or

illegal practices and methods and activities in the conduct of

gaming; or (ii) request the approval of the State gaming agency

for such revised standards, which approval shall be deemed

granted unless disapproved within sixty days of submission of

t b revised standards; the State gaming agency shall approve

the revised standards upon request unless it finds that they

would have a material adverse impact on the public interest in

the integrity of the gaming operations, and shall disapprove

only such portions of any proposed revised standards which are

determined to have a material adverse impact on such public

interest, setting forth with specificity the reasons for such

disapproval; any disapproval of revised standards by the State

gaming agency shall be subject to review in the manner provided

by the laws of the State for review of administrative decisions

which are subject to judicial review.

(b) Testina of certain lottery eaui~ment. The Tribe shall

engage an independent testing laboratory registered in

accordance with this Compact to test tickets used in a Tribal

lottery and shall provide copies of each report of such testing

laboratory to the State gaming agency. The State gaming agency

may perform such tests on any on-line computer system, drawing

equipment, or tickets employed in the conduct of a Tribal

lottery as it may reasonably require to verify the integrity

and accuracy of such systems.

(c) Lottery drawina security procedures. The Tribe shall

consult with the State gaming agency regarding the adoption of

lottery drawing security procedures and shall adopt lottery

drawing security procedures substantially corresponding to

those utilized by the State for corresponding types of lottery

drawings or such other procedures as may be adopted by the

Tribal gaming agency and approved by the State gaming agency.

(dl appro - val of annu tv providers. The State gaming

agency shall review the qualifications of any annuity provider

selected by the Tribe in connection with the payment of any

lottery prize in order to determine the financial

responsibility of such provider and the Tribe shall not employ

such provider unless the State gaming agency determines that

the provider meets standards of financial responsibility

corresponding to those imposed by the State for similar

purposes.

(e) A ~ ~ r o v a l of lottery aames. The Tribal gaming

operation shall submit to the State gaming agency for its

review each proposed new lottery game to be operated by the

Tribe which is not substantially identical to corresponding

games operated by the State and shall approve such game so long

as the rules of the game and any software or hardware computer

equipment, drawing equipment and lottery tickets required for

operation of such game make it possible to operate such game in

a manner which is honest, fair to patrons and amenable to

regulatory oversight.

-4 1-

SECTION 10. Tribal reaulatorv authority in the event that the

State declines to exe . . . . rcise ~urisdiction.

(a) Default authority of Tribal aamina aaencv, In the

event that the State gaming agency declines to exercise all or

any portion of the authority vested in the State gaming agency

pursuant to Sections 5, 6, 7(a), 7(b), 8(a), 8(c), 8(d), 8(e),

8(f), 9(a), 9(b)r 9(c), 9(d), 9(e) or 13(b) of this Compact, or

in any standards of operation and maintenace adopted in

accordance with sections 7, 8 or 9 of this Compact, then the

Trjbal gaming agency shall exercise such authority and carry

out the responsibilities set forth therein including, without

limitation, licensing of employees and registration of gaming

service enterprises, until and unless the State gaming agency

advises the Tribe in writing that it is prepared to exercise

such authority.

(b) gefault authority of Tribal law enforcement aaencv.

In the event that the State law enforcement agency declines to

exercise the responsibilities vested in it pursuant to sections

5 and 6 of this Compact, then the Tribal law enforcement agency

shall carry out such responsibilities at the request of the

State gaming ageney or the Tribal gaming agency, as the case

may be, until and unless the State law enforcement agency

agrees to exercise such responsibility.

(c) Default vrovisions for av~eal of State administrative

ons. Whenever in this Compact it is provided that

decisions of State adminstrative actions may be appealed to the

Superior Court of Connecticut in the manner provided for appeal

of agency actions subject to judicial review, in the event that

such Court lacks jurisdiction to entertain such appeal, then

the action shall be subject to appeal to an arbitrator

designated in accordance with the procedures of the American

Arbitration Association. The procedures for such arbitration

shall be governed by the rules of the American Arbitration

Association. The arbitration shall be decided in accordance

with the provisions of this Compact and, to the extent

consistent with such provisions, in accordance with the

principles generally applicable under Connecticut law to review

of final administrative decisions subject to judicial review.

SECTION 11. State assessment for costs of oversiaht,

(a) JmDosltlon of assessment for State reaulatorv . .

tures. The State shall annually make an assessment

sufficient to compensate the State for the reasonable and

necessary costs of regulating gaming operations and conducting

law enforcement investigations pursuant to this compact. Such

assessment shall include any costs of fringe benefits for

personnel due and owing to the State Comptroller and shall be

net of fees received with respect to the submission of gaming

service enterprise registrations pursuant to section 6 of this

compact.

(b) Procedure for assessments, On or before August first,

annually, the State shall render to the Tribe a statement of

the total cost of regulation and law enforcement for the

preceding fiscal year ending June thirtieth, together with

proposed assessments for the forthcoming fiscal year based on

the preceding fiscal year cost, except that in the first year

of this Compact the assessment shall be prospective and based

upon a prorata allocation of costs if this Compact becomes

operative in the course of a fiscal year, and shall be

established following consultation with the ~ribe. On

September first annually, the State, after receiving any

objections to the proposed assessments and making such changes

or adjustments as may be indicated, shall assess the Tribe for

t b costs of regulation and law enforcement. The Tribe shall

thereafter make a payment representing one-third of the

assessment within a twenty day period, and thereafter payments

on January 1 and April 1 annually. Such payments shall be

deposited with the State treasurer. The moneys so deposited

shall be credited to the general fund of the state and shall be

accounted for as the State may deem appropriate.

(c) Procedure for av~eal of assessments, If the Tribe is

aggrieved because of any assessment levied pursuant to this

Compact, it may, within one month from the time provided for

the payment of such assessment, appeal therefrom to the

superior court for the judicial district of Hartford-New

Britain, which appeal shall be accompanied by a citation to the

Executive Director of the Division of Special Revenue to appear

before said court. Such citation shall be signed by the same

authority, and such appeal shall be returnable at the same time

and served and returned in the same manner, as is required in

case of a summons in a civil action. Proceedings in such

matter shall be conducted in the same manner as provided for

proceedings pursuant to section 38-54 of the Connecticut

General Laws or such successor statute as may be enacted by the

State.

(d) Adjustment of excess assessments. In the event that

the total assessment paid by the Tribe during any fiscal year

of the State exceeds the reasonable and necessary costs of

regulating gaming operations and conducting law enforcement

investigations pursuant to this Compact during such fiscal

year, then the State shall adjust the assessment for the

succeeding fiscal year in the amount necessary to offset such

excess assessment. If the Tribe is aggrieved because of any

failure by the State to make such an adjustment, any claim for

such adjustment shall be presented in the appeal of the

assessment as provided in sub-section (c).

(e) Adjustment for termination of reaulatorv oversiaht.

If the State ends regulatory oversight during the course of a

fiscal year in accordance with the terms of this compact, than

there shall be a prorata adjustment to the assessment made by

the State in accordance with the provisions of subsections ( a )

and (b). -

SECTION 12. A D D ~ O V ~ ~ of management contracts.

In accordance with Section ll(d)(9) of the Act, 25 U.S.C.

§2710(d)(9), the Chairman of the National Indian Gaming

Commission shall be responsible for the review and approval of

any management contract for management of Tribal gaming

operations conducted on the Reservation pursuant to this

Compact in accordance with the provisions of subsections (b),

(c), (d), (f), (g) and (h) of Section 12 of the Act, 25 U.S.C.

52711. The Tribe shall not enter into any management contract

for the.management of Tribal gaming operations on the

Reservation without the approval of the Chairman in accordance

with the terms of the Act. The Tribe shall provide the State

gaming agency with notice of any management contract submitted

to the National Indian Gaming Commission in accordance with

this section and the Tribe agrees that the State should be

deemed to have standing to submit its views regarding approval

of such contract to the National Indian Gaming Commission.

SECTION 13. Enforcement of Com~act Drovisions.

(a) Tribal aamina commission su~ervision. The Tribal

gaming agency shall have primary responsibility for oversight

of tribal gaming operations and shall, for that purpose, employ

non-uniformed inspectors who shall be present in all gaming

facilities during all hours of operation and who shall be under

the supervision of personnel accountable solely to the Tribal

gaming agency and-not to any management employees of the Tribal

gaming operations. Such inspectors shall have unfettered

access to all areas of the gaming facilities at all times, and

personnel employed by the Tribal gaming operation shall for

such purposes provide such inspectors access to locked and

secure areas of the gaming facilities in accordance with the

standards of maintenance and operation promulgated pursuant to

section 7 of this Compact. Such inspectors shall report to the

Tribal gaming agency regarding any failure by the ~ r i b a l gaming

operation to comply with any of the provisions of this Compact

or the applicable laws and ordinances of the Tribe. Inspectors

assigned by the Tribal gaming agency shall also receive

consumer complaints within the gaming facilities and shall

assist in seeking voluntary resolution of such complaints. The

Tribal gaming agency may investigate any report of a failure to

comply with the provisions of this Compact or the applicable

lays and ordinances of the Tribe and may require the Tribal

gaming operation to correct such failure upon such terms and

conditions as the Tribal gaming agency may determine

necessary. Notwithstanding the provisions of section 17(h),

inspectors employed by the Tribal gaming agency for the

purposes set forth in this section shall be required to obtain

gaming employee licenses pursuant to section 5 of this

Compact. The Tribe will prepare a plan for the protection of

public safety and the physical security of patrons in each of

its gaming facilities, following consultation and agreement

with the State law enforcement agency, setting forth the

respective responsibilities of the Tribal law enforcement

agency, the security departments of the Tribal gaming

operations, and the State law enforcement agency. The Tribe

will also provide the State gaming agency with copies of its

floor plans and surveillance systems for each gaming facility

and confer with the State gaming agency regarding the adequacy

of such plans and systems. The Tribal gaming agency shall be

empowered by Tribal ordinance to impose fines and other

appropriate sanctions within the jurisdiction of the Tribe upon

any person who violates provisions of this Compact or the

applicable Standards of Operation and Management adopted by the

Tribal gaming agency.

(b) State review authority. The State gaming agency shall

have the authority to review the tribal gaming operations in

order to determine whether such operations are conducted in

compliance with the provisions of this Compact, and for that

purpose personnel employed by the State gaming agency shall

have access to all areas of the gaming facilities without prior

notice for the purpose of audits of the Tribal gaming

operations, and personnel employed by the Tribal gaming

operation shall for such purposes provide such State personnel

auditors access to locked and secure areas of the gaming

facilities in accordance with the standards of maintenance and

operation promulgated pursuant to this Compact. Such State

personnel shall report to the State gaming agency regarding any

failure by the Tribal gaming operation to comply with any of

the provisions of this Compact. Each Tribal gaming operation

shall provide the-State law enforcement agency and State gaming

agency with access to reasonable office space for the use of

their personnel for the purposes of such review activities.

Personnel employed by the State gaming agency may attend the

regular count conducted by the Tribal gaming operation in

accordance with the standards of operation and maintenance

adopted pursuant to section 7 of this Compact. Personnel

employed by the State gaming agency shall not interfere with

the conduct of the Tribal gaming operations except as may be

required to perform such review functions. Auditors employed

by the State gaming agency shall have unfettered access during

ordinary hours of operation to inspect and copy all records,

including computer log tapes, of the Tribal gaming agency and

the Tribal gaming operations; provided, however, that all

records of the Tribal gaming operations and ~ r i b a l gaming

agency which are obtained by the State gaming agency shall be

deemed confidential and proprietary financial information

belonging to the Tribe and shall be protedted from public

disclosure by the State without the express written consent of

the Tribe. The State gaming agency may conduct such

investigations and may employ subpoena powers with which it may

be vested under the laws of the State as it deems appropriate

to investigate violations of this Compact with respect to the

Tribal gaming operations. The Tribal gaming agency shall

require that all security incidents and patron complaints

reported by or to the Tribal security department or to the

Tribal gaming agency be reported on a daily basis to the State

gaming agency. The Tribe shall cause each of its Class 111

gaming operations to be subjected to an annual audit by an

independent certified public accountant in accordance with

procedures adopted by the independent auditor following

consultation with the State gaming agency. Such audit shall

include any additional procedures required by the State gaming

agency and not otherwise required by the independent auditor,

which additional procedures shall be performed at the sole

expense of the State gaming agency. The State gaming agency

shall be provided with an opportunity to review the audit

findings with the independent auditor prior to issuance of the

audit report and shall receive copies of the audit report,

engagement letter, management's representation letter, lawyer's

contingency letter and such other workpapers as the State

gaming agency deems necessary.

(c) Enforcement authority of the State aamina aaencv, If

t h ~ State gaming agency determines that the Tribal gaming

operation is not in compliance with the provisions of this

Compact the State gaming agency shall deliver a notice of

non-compliance to the Tribal gaming agency and the Tribal

gaming operation setting forth the nature of such

non-compliance and the action required to remedy such

non-compliance. In the event that the Tribal gaming operation

fails to comply with any provision of this Compact following

receipt of a valid notice from the State gaming agency

requesting correction of such non-compliance, the United States

District Courts shall have jurisdiction pursuant to 25 U.S.C.

§2710(d)(7)(~)(iii) over any cause of action initiated by the

State gaming agency to enjoin a class I11 gaming activity

located on the Reservation and conducted in violation of this

Compact. The Tribe hereby waives any defense which it may have

by virtue of its sovereign immunity from suit with respect to

any such action in the United States District Courts to enforce

the provisions of this Compact, and consents to the exercise of

jurisdiction over such action and over the Tribe by the United

States District Courts with respect to such actions to enforce

the provisions of this Compact. In addition to the remedies

provided hereunder, the State may exercise its right pursuant

to sub-section (d) of this section to petition the National

Indian Gaming Commission to impose penalties including civil

fines and temporary or permanent closure of gaming facilities

for violation of the ordinances of the Tribe including the

provisions of this Compact incorporated in such ordinances.

horitv of the National Indian Gam (d) Enforcement aut inq

Commission. The Tribe shall enact as part of its tribal

ordinances governing Class I11 gaming activities on the

Reservation and submitted to the National Indian Gaming

Commission for approval pursuant to Section ll(d)(2) of the

Act, 25 U.S.C. $2710(d)(2), all of the provisions of this

Compact. In accordance with Section 14 of the Act, 25 U.S.C.

52713, the National Indian Gaming Commission may enforce the

provisions of the ordinances of the Tribe governing the conduct

of Class I11 gaming activities on the Reservation, including

the provisions of this Compact as incorporated into such

ordinances pursuant to this section. The State Gaming Agency

may petition the National Indian Gaming Commission to impose

any penalty of civil fine or temporary or permanent closure of

gaming facilities, as authorized by the Act, for violation of

the provisions of this Compact as incorporated in the approved

ordinances of the Tribe.

SECTION 14. Bp~lication of State reaulatorv standaraS,

(a) Health and safety standards, Tribal ordinances and

regulations governing health and safety standards applicable to

the gaming facilities shall be no less rigorous than standards

generally imposed by the laws and regulations of the State

relating to public facilities with regard to building,

sanitary, and health standards and fire safety. The State

gaming agency may require the Tribe to cooperate with any State

agency generally responsible for enforcement of such health and

safety standards in order to assure compliance with such

standards. Tribal ordinances and regulations governing water

discharges from the gaming facilities shall be no less rigorous

than standards generally imposed by the laws and regulations of

the State relating to public facilities; provided, however,

that to the extent that federal water discharge standards

specifically applicable to the Reservation would preempt such

State standards, then such federal standards shall govern.

(b) Reaulation of alcoholic beveraaes, Service of

alcoholic beverages within any gaming facility shall be subject

to the laws and regulations of the State applicable to sale or

distribution of a3coholic beverages. The Tribal gaming

operation shall be entitled to a hotel permit for the sale of

liquor for gaming facilities which are contained in the same

building as any hotel, or a cafe permit for the sale of liquor

for gaming facilities which are not contained in the same

building as any hotel, or such equivalent permits as may from

time to time be available to similar enterprises operated

pursuant to the laws of the State, and the price of any

alcoholic beverage sold to a gaming customer in partial w

consideration for amounts wagered need not be billed by

separate charge to the individual customer; provided, however,

that the price of each such alcoholic beverage deemed sold to a

gaming customer in partial consideration for amounts wagered

shall be no less than the price required for such sales

pursuant to the laws of the State and shall be separately

accounted for by the Tribal operation, any tax due under the

laws of the State for the retail sale of such beverages shall

be paid with respect to such sales, and daily and monthly

records shall be maintained with respect thereto and shall be

available for inspection by the State gaming agency and by the

State Department of Liquor Control or any successor State

agency.

(c) Traffic Standards. The Tribe shall provide access

from any gaming facilities located on the Reservation onto

public highways of the State of Connecticut which are adequate

to meet standards of the State Traffic Commission or shall

enter into agreements with the State Traffic Commission for the

provision of such-access by the State, including provisions for

compensation by the Tribe of the costs incurred by the State in

constructing such improvements to the public highways,

including traffic control signals, as may be necessary. The

State will cooperate with the Tribe in providing at the Tribe's

expense such signage as is reasonable and appropriate in order

to permit members of the traveling public to locate the

Reservation from the major road approaches.

-53-

SECTION 15. Mgratorium on certain Class 111 aamina.

(a) Moratorium on Class I11 . . video facsimile aamina:

~otwithstanding the provisions of section 3(a)(ix), the ~ r i b e

shall have no authority under this Compact to conduct Class I11

video facsimile games as defined pursuant to section 3(a)(ix)

unless and until either: (a) it is determined by agreement

between the Tribe and the State, or by a court of competent

jurisdiction, that by virtue of the existing laws and

regulations of the State the operation of video facsimiles of

g w e s of chance would not be unlawful on the ground that the

Tribe is not located in a State that permits such gaming for

any purpose by any person, organization, or entity within the

meaning of 25 U.S.C. §2710(d)(l)(B) (it being understood and

agreed that there is a present controversy between the Tribe

and the State in which the Tribe takes the position that such

gaming is permitted under the existing laws of the State and

the State takes the position that such gaming is not permitted

under the existing laws of the State); or (ii) the existing

laws or regulations of the State are amended to expressly

authorize the operation of any video games of chance for any

purpose by any person, organization or entity. Upon such

determination the operation by the Tribe of video facsimiles of

games of chance shall be subject to the applicable provisions

of the Standards of Operation and Maintenance for Games of

Chance adopted pursuant to section 7 of this Compact.

(b) Moratorium on tele~hone lottery bettina;

Notwithstanding the provisions of section 3(a)(x), the Tribe

shall have no authority under this Compact to conduct telephone

betting on lottery games unless and until either: (a) it is

determined by agreement between the Tribe and the State, or by

a court of competent jurisdiction, that by virtue of the

existing laws and regulations of the State the operation of

telephone betting on lottery games would not be unlawful on the

ground that the Tribe is not located in a State that permits

such gaming for any purpose by any person, organization, or

entity within the meaning of 25 U.S.C. §271O(d)(l)(B) (it being

understood and agreed that there is a present controversy

between the Tribe and the State in which the Tribe takes the

position that such gaming is permitted under the existing laws

of the State and the State takes the position that such gaming

is not permitted under the existing laws of the State); or (ii)

the existing laws or regulations of the State are amended to

expressly authorize the operation of any telephone betting on

any lottery game for any purpose by any person, organization or

entity. Upon such determination the operation by the Tribe of

telephone betting on lottery games shall be subject to the

applicable provisions of the Standards of Operation and

Maintenance for Lottery Gaming adopted pursuant to section 9 of

this Compact.

(c) ~oratorium on horse racina: Notwithstanding the

provisions of section 3(a)(viii), the Tribe shall have no

authority under this Compact to conduct pari-mutuel betting on

horse races conducted on the Reservation unless and until

either: (a) it is determined by agreement between the Tribe

and the State, or by a court of competent jurisdiction, that by

virtue of the existing laws and regulations of the State the

operation of pari-mutuel betting on horse races conducted on

the Reservation would not be unlawful on the ground that the

Tribe is not located in a State that permits such gaming for

any purpose by any person, organization, or entity within the

meaning of 25 U.S.C. §2710(d)(l)(B) (it being understood and

agreed that there is a present controversy between the Tribe

and the State in which the Tribe takes the position that such

gaming is permitted under the existing laws of the State and

the State takes the position that such gaming is not permitted

under the existing laws of the State); or (ii) the existing

laws or regulations of the State are amended to expressly

authorize the operation of any pari-mutuel betting on horse

races conducted in the State for any purpose by any person,

organization or entity. Upon such determination the operation

by the Tribe of pari-mutuel betting on horse races conducted on

the Reservation shall be subject to the applicable provisions

of Standards of Operation and Maintenance for Horse Racing

which shall be adopted by the Tribal gaming agency and

submitted to the State gaming agency for approval, which

approval will not be unreasonably withheld so long as such

Standards are substantially equivalent to the Standards

applicable to pari-mutuel betting on greyhound races as

contained in Appendix B of this Compact.

(d) Moratorium on uames of chance: Notwithstanding the

provisions of section 3(a)(i) or 3(a)(ix) or 15(a), the Tribe

shall have no authority under this Compact to conduct games of

chance or video facsimiles of games of chance as defined in

sections 3(a)(i) and 3(a)(ix) unless and until the later of:

(a) May 25, 1991; or (b) the date ninety days following the

date on which the Tribe gives written notice to the State

setting forth its intention to conduct such games of chance,

together with a description of the facility in which such games

will be conducted and the approximate number of gaming

employees who will be required to be licensed pursuant to this

Compact with respect to such facility, the Tribe shall have no

authority under this Compact to conduct games of chance or

video facsimiles of games of chance as defined in sections

3(a)(i) and 3(a)(ix) unless in accordance with an amendment of

this Compact negotiated in accordance with the terms of section

17(d) .

SECTION 16. Bp~lication of net revenues of Class I11 Gamina.

In accordance with the provisions of section ll(b)(2)(B)

and ll(d)(l)(A)(ii) of the Act, 25 U.S.C. §§2710(b)(2)(B) and

(d)(l)(A)(ii), the ordinances of the Tribe governing Class 111

gaming activities-on the Reservation shall provide that net

revenues from any such gaming activities are not to be used for

purposes other than:

(a) to fund tribal government operations or programs;

(b) to provide for the general welfare of the Indian tribe

and its members;

(c) to promote tribal economic development;

(d) to donate to charitable organizations; or

(e) to help fund operations of local government agencies

of the State and its political subdivisions.

SECTION 17. Effective Date and Duration: Amendments,

(a) gffective date. This Compact shall be effective upon

publication of notice of approval by the Secretary of the

Interior of the United States in the Federal Register in

accordance with 25 U.S.C. §2710(d)(3)(B).

,. (b) Termination. Once effective this Compact shall be in

effect until terminated by written agreement of both parties.

(c) Amendment and modlflcationL . . The terms and conditions

of this Compact shall not be modified, amended or otherwise

altered except by written agreement of both parties and

enactment as set forth in sub-section (a).

(dl Subseauent neaotlations, . . Nothing in this Compact

shall be deemed to waive the right of the Tribe to request

negotiations for a tribal-state compact with respect to a Class

I11 gaming activity which is to be conducted on the Reservation

but is not permitted under the provisions of this Compact,

including forms of Class I11 gaming which were not permitted by

the State for any purpose by any person, organization, or

entity at the time when this Compact was negotiated but are

subsequently so permitted by the State, in accordance with 25

U.S.C. §2710(d)(3)(A); provided, however, that this sub-section

shall not be deemed to authorize the Tribe to initiate a new

request for negotiations regarding the terms of this Compact

applicable to forms of gaming authorized by section 3(a) of

w this Compact, except to the extent that existing state law

relating to such forms of gaming are changed or to the extent

that the State voluntarily consents to such negotiations.

(e) Status of Class I1 aamina. Nothing in this Compact

shall be deemed to affect the operation by the Tribe of any

Class I1 Gaming as defined in the Act, whether conducted within

or without the gaming facilities, or to confer upon the State

any jurisdiction over such Class I1 Gaming conducted by the

Tribe on its Reservation.

(f) Prohlbltlon on taxation by the State- . . . Nothing in this

Compact shall be deemed to authorize the State to impose any

tax, fee, charge or assessment upon the Tribe or any Tribal

gaming operation except for charges expressly authorized

pursuant to section 11 of this Compact.

(g) No restrlctlons on bankina functions. . . Nothing in this

Compact shall be deemed to regulate or to authorize State

regulation of any ordinary commercial or banking function of

the Tribe, including without limitation the provision of cash

advance facilities for use of credit cards or bank cards

located either within or without any gaming facilities.

(h) Preservation of Tribal self - ao vernment, Nothing in

this Compact shall be deemed to authorize the State to regulate

in any manner the government of the Tribe, including the Tribal

gaming agency, or to interfere in any manner with the Tribe's

selection of its governmental officers including members of the

~ r i b a l gaming agency. No licensing or registration requirement

contemplated by this Compact shall be applicable to such

officers with respect to their capacity as officers of the

Tribe.

(i) Consultation uDon revision of State reaulations.

Whenever the State adopts or revises any rule or regulation

which corresponds to any provision of the Tribe's Standards of

Operations and Management relating to the same type of gaming,

the State gaming agency may notify the Tribal gaming agency

that it requests analagous changes in such Standards and the

Tribal gaming agency will promptly confer with the State gaming

agency in good faith concerning the appropriateness and

applicability of such changes.

SECTION 18. Potices,

All notices required or authorized to be served shall be

served by first class mail at the following addresses:

Tribal Chairman Governor

Mashantucket Pequot Tribe State of Connecticut

Post Office Box 160 State Capitol

Ledyard, CT 06339 Hartford, CT 06106 -

SECTION 19. Se . . verabilitv. In the event that any section or

provision of this Compact is held invalid, or its application

to any particular activity held invalid, it is the intent of

the parties that the remaining sections of the Compact and the

remaining applications of such section or provision shall

continue in full force and effect.